Home buyers of Delhi-NCR who were facing problems from banks and finance companies have got a big relief from the Supreme Court. The Supreme Court has made it clear that banks or financial institutions cannot harass buyers who have bought homes under the Interest Subsidy Scheme for dues.
The Supreme Court gave this decision
The Supreme Court, while hearing the appeal of home buyers, said that coercive action cannot be taken against home buyers who have booked flats under the Interest Subsidy Scheme and have not yet got possession. This means that neither the builder nor the banks can harass such home buyers in matters like EMI payment or cheque bounce.
What is the Interest Subsidy Scheme?
Under the Interest Subsidy Scheme, banks directly disburse loans to the builder. Until the builder hands over the possession of the flat to the home buyer, it is the builder’s responsibility to pay the EMI. Under this scheme, many such cases were coming up in which the builder has defaulted and after that the banks are approaching the buyers for payment. Due to this, home buyers were facing problems.
Delhi High Court did not give relief
Home buyers, troubled by the banks contacting them for payment, had approached the court for relief. Earlier, home buyers had filed a petition in Delhi High Court, but they did not get relief from there. After that, home buyers had approached the Supreme Court. Finally, home buyers have got relief in the Supreme Court.
Action can be taken against the builders
Hearing the case, a two-member bench of the Supreme Court ordered a stay on all coercive actions taken so far. This ban is also applicable on complaints received under section 138 of the Negotiable Instruments Act, 1881. Supreme Court has given relief to home buyers and also reprimanded the builders. Builders have been asked to file an affidavit within two weeks and provide information about their assets. If the builders do not follow this order, then the Supreme Court has also warned of taking action against them.
Reaction of the home buyers’ organization
Home buyers’ organization NeFOWA has expressed happiness over this decision of the Supreme Court. It has said – this was our years old demand. It is hoped that home buyers, burdened by both rent and EMI, had to face recovery and attachment orders from the bank, now they will get relief from that. It is hoped that the banks will not hesitate in giving loan again and the credit score will also not be affected due to this. The honorable court and the government should also pay attention to this. Besides, similar concessions should be given in case of houses stuck in delayed projects.
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